Have You Had Enough Fear-Mongering?

It would have to happen sooner or later. Someone has already coined a term for all of this pessimistic news that we are being bombarded with daily; “pessimism porn”.  Psychologists have long held the belief that it is human nature to feel a sort of magnetic attraction towards gloom and doom.

The way I see it is, the more we allow ourselves to focus on the bad news, the more we blur our perspective with negative input. In Canada we now have an unemployment rate of seven per cent, not a good number. But what we fail to focus on is that 93 percent of us have jobs. Our glass is 93 percent full!

How is this changing our buying habits? Having been involved in residential real estate for more than two decades, I naturally focus a lot of my attention on the state of the real estate market. Sales in Toronto have dropped by close to 50 percent. However, neither of the most critical components necessary to sustain a healthy housing market – employment figures or mortgage rates - justify such a dramatic decline in home sales.

I do not know how long this recession will last, nor do I know how much more home prices will decrease – if at all. However, I do know that there are individuals and families buying homes under these market conditions.

I have written about this before. We are still seeing buyers paying the full asking price and in some cases more than the asking price, even under these market conditions!

So what’s going on? Are some of those buyers aware of something which the rest of us are not? I do not believe that this is the case. Perhaps instead, most of those who are still getting into homeownership are simply taking it all in good stride and refusing to join “the negative masses”. They are simply carrying on with their lives.

The sky has not yet fallen and I humbly believe it will not fall any time soon. Yes, it is going to be a bumpy ride. We should remember that by staying out of the market and watching from the sidelines while waiting for things to get better, we are all potentially contributing to our own demise.

If we all decided to simultaneously put all of our major buying decisions on hold, we might just create our own apocalypse and then truly have the sky fall on all of us.

Would love to hear your comments. Do you agree, disagree or have no opinion. Let us know.

Are You Paying Too Much for Your Property Taxes?

When home values were going through the roof, so were real estate tax assessments. Today the value of many homes has dropped. 

Therefore, the assessments on some of these homes are no longer accurate. That means that you may be overpaying for your property taxes.

If you believe the assessment you recently received from the Municipal Property Assessment Corporation (MPAC) is inaccurate or excessive, you have the right to challenge it. Believe it or not, there is some good news these days, and this one you can take to the bank. Furthermore, this is a free service.

You can ask for a review of your property assessment through the “Request for Reconsideration (RFR) and Appeals” process. The form is available at www.mpac .ca, or you can call them at 1-866-296-6722.

Go on line and link to the MPAC web site, http://www.mpac.ca/ (then go to: About my property, at the center of the page Click here to login), check your property specifics such as lot size, room dimensions, age, etc. Your next step is to find similar houses in your community with the same specs.

You can get information on up to 24 additional properties of your choice and up to 6 properties selected by MPAC, FREE OF CHARGE. Be prepared to prove to the assessment office that your home has a lower value.

The process is simple and you are able to see the assessed values of similar houses in your neighbourhood.

Your “Request for Reconsideration” form must be filed before March 31 2009. By getting a new assessment of your home value, you could save hundreds and often thousands of dollars each year. A little bit of work on your part can help you put more than a few more loonies in your pocket. 

Do you need more information to help you cut your property taxes? Send me an email. Or call me at 416-482-8330 ext. 3519.

Send this information to a friend or neighbour. Click on the “Share This” butom below.

Saying No to a Client is Hard to Do

Yesterday I met with a client who wants to move out of town. Her plans had changed and she would like to go back to the town where she grew up. She has lived in her home for two years and has had major work done to her house.

She paid what was then market value, then put in a new kitchen and finished the basement.

We had a very pleasant chat as we examined the value of her home in today’s market. Her goal was to recover the price she paid for the house two years ago, plus the cost of renovations and some profit for her efforts.

After looking at comparable homes that have sold on her street and in her immediate neighbourhood in the last three months, it became clear to me that she would not be able to do this.

Based on my experience, I knew that in a best-case scenario she might be able to walk out with a fifty thousand dollar shortfall. We went over a few other options she could consider but none of them satisfied her.

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5 Tips to Ensure Success When Selling Your Home in a Soft Housing Market

It’s on the news everyday. The sky is falling and housing prices continue to sag. But remember, no matter how downbeat the reports, the doomsayers love to exaggerate even farther.

This January my office has had several homes sold at the full asking price or above. There are buyers out there and they will buy your home if you make all the right moves.

So here are the tips…

1. Dress for success.
It was important when the market was hot. Today it’s crucial. Get rid of all clutter to make your home more spacious and highlight its best features. Get tips and ideas from your real estate agent or a professional stager. Rent storage if necessary to hold your excess possessions. This is a great time to get rid of some your excess stuff.

2. Price it to sell, not to sit.
Buyers have sharpened their pencils (I almost said swords) and expect great value. Don’t turn them off by “trying it at a higher price” for now. It may appear counter-intuitive, but asking for the highest price in today’s market may have the opposite result. Today’s buyers have done their homework before they venture out to see your home. If you are too ambitious in your pricing, they will not come back.

3. Give it maximum exposure.
If your home is not listed through the Multiple Listing Service, you are missing as many as 98% of all buyers. The MLS is the most powerful way of exposing your home to buyers all over the world. Do not fall into the temptation of having a “secret listing” by saying to your agent … “when you have a buyer for my house, show them through.”

4. Offer buyer financing.
In a soft market you may want to sweeten the pot by offering a small Vendor Take Back mortgage. Or you may offer to pay part or all of the buyer’s mounting Land Transfer Tax for the city of  Toronto.

5. Look at all offers.
When the market is soft, you need an extra dose of patience. Don’t be insulted by an initial low offer. Take all offers seriously. Make a counter offer and try to entice the buyer back to the table. If they are from out of town, remind them that Toronto is considered the second most liveable city in the Americas.

Why Home Owners Want to Throw New Toronto Recycling Rules in the Garbage

Cartoon courtesy TownCrier newspaper

Confused about what can and cannot be recycled in Toronto? The job is about to get even more confusing. Under the City of Toronto new rules you can put retail and grocery bags in the recycling bin, but you cannot put your clear bags, or those used to hold fruits and vegetables.

Styrofoam cups and egg cartons can be recycled as well, same for foam takeout containers, but only if they have been rinsed out first.

When putting grocery bags in the blue bin, the city wants you to place all the bags into one bag and then tie a knot, but not to use a twist tie or an elastic band. “Don’t be naughty, tie the knotty!”

These new rules are causing headaches and confusion for many Toronto residents. “You need a list of do’s and don’ts, and what can go in which recycling bin and what can go in a bag,” one shopper told 680News.

“Everything needs to be itemized now, so you know how to throw out your garbage properly; it’s too much work.”

Like most of us I want to be a good citizen and do my bit to help save the planet, but I am afraid that if the city keeps this up, we may all have to go back to school and get a Masters in “Green Eco Disposal Studies.”

Go to the City of Toronto site for more information on how to recycle the new items. The city hasn’t yet updated its “what goes in the bin” section.

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